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🏚️ Foreclosure Auctions Surge 20%: What's Driving the Spike in 2025?

Foreclosure activity is back in the headlines — and not in a good way. According to new data from Auction.com, foreclosure auction volume jumped 20% in Q1 2025 compared to the previous quarter, reaching the highest levels seen in six quarters. For homebuyers, investors, and policy watchers, these numbers reflect both shifting economic conditions and the end of pandemic-era protections.


📈 Key Trends at a Glance:

  • Overall foreclosure auction completions are now at 49% of pre-pandemic levels from Q1 2020.

  • VA loan foreclosures skyrocketed 104% year over year — largely due to the end of a national moratorium.

  • Scheduled foreclosure auctions rose 14%, reaching 60% of pre-pandemic norms.


🔍 What’s Behind the Spike?

“Foreclosure volume often reflects delayed distress,” explains Neil Caron, Area Manager at CMG Mortgage. “Now that federal moratoriums have lifted, we’re seeing a backlog begin to flow through the system.”

VA-backed loans were hit hardest. With the expiration of the VA foreclosure moratorium at the end of 2024, veteran homeowners faced a sudden shift, pushing up foreclosure volumes across the country.

Other federally backed loans also saw increases:

  • Fannie Mae & Freddie Mac loans: Up 8% YoY

  • FHA loans: Up 5%

  • USDA loans: Down 12% — the only category to decline

📍 States With the Largest Increases:

  • Arizona: +151%

  • Utah: +100%

  • New Hampshire: +80%

  • Kansas: +74%

  • Texas: +73%

Across 26 states, foreclosure auction volume rose year over year — signaling that this isn’t just a regional trend.


💰 Buyers Getting Picky at Auctions

While more properties are hitting the auction block, buyers are becoming more conservative with their offers. Auction.com reported falling price demand:

  • January: -2%

  • February: -4%

  • March: -6%

This suggests that even investors are cautious in the face of rising economic uncertainty, inflation, and shifting housing dynamics.


🐽 RSL Perspective

At ReadySetLoan, we track foreclosure trends not to alarm, but to inform. If you're a buyer navigating this market — whether you're seeking a deal or protecting your own equity — it’s crucial to stay ahead of these shifting tides.

Let ReadySetLoan be your guide in understanding how foreclosure activity may influence local housing inventory, buyer opportunity, and risk factors for borrowers. We're here to help you navigate the finish line with confidence.

💡 Curious about VA loan relief or foreclosure alternatives? Explore your options at ReadySetLoan.com



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